Economy of the Far East

1. What features of the economic and geographical situation of the Far East remained unchanged, and which have changed over time?

The remoteness of the territory from European Russia and the wide access to the seas of the Pacific and Arctic Oceans remain unchanged. They define the region as the most important outpost of Russia on its eastern borders. Here, our country is most closely bordered by sea with the United States, Canada and Japan. In the south of the Primorsky Territory, the Russian Federation overland has a border with the DPRK. Through the Far Eastern ports, Russia’s foreign economic relations with many Pacific countries are being implemented, which can serve as areas for the consumption of our resources and products, and at the same time they are suppliers of certain types of goods for the subjects of the Federation of the Far East.

Changes in the population and transport development of the territory, the importance and accessibility of different types

of minerals. The geopolitical situation is changing, the border countries can be peace-loving, they can be aggressive.

In 2004 the construction of the meridional section of the Berkakit-Aldan-Tommot railway line was completed in Yakutia. The length of the road is 360 km. A single-track railway line to Tommot continues the Tynda-Berkakit railway line and will soon increase the loading of the Baikal-Amur Mainline by 5-7 million tons per year. It is planned to bring the railway to Yakutsk in the next 5-6 years. This will radically change the transport and geographical position of the north of the Far East. Now the delivery of goods for 80% of the territory of Yakutia is carried out in a short navigation period by water transport. A significant amount of traffic on avtozimnikam. While a high share of transportation costs affects the cost of Yakut products, greatly reducing its competitiveness. The Berkakit-Tommot railway will reduce transportation costs for the enterprises of Yakutia, will increase the competitiveness of their products. The laying of the railway to Yakutsk will allow to connect the latitudinal national

transport routes of Russia: Transsib and BAM, on the one hand, and the Northern Sea Route on the other.

2. Do Chukotka, Kamchatka, Sakhalin, Primorye and the Amur region differ in their economic and geographical position? What is the unity of these territories? What are the differences?

Similarities are described in the previous question. Differences are in different latitudinal positions, and consequently, in different heat supply and agro-climatic resources. Kamchatka and Sakhalin are practically cut off from the mainland, and communication with them is possible only by sea or by air. Primorye and the Amur region border on foreign countries by land, the rest of the listed regions only by sea. The availability of natural resources, both forest and minerals, is different: Chukotka is practically treeless territory, Sakhalin is successfully logging and the largest number of woodworking and pulp and paper mills per unit area is located. Sakhalin is rich in oil, gas and coal. Primorsky Krai – coal and ores of non-ferrous metals. The minerals of Chukotka and Kamchatka are not only poorly developed,

3. List the main areas of specialization of the district. What, in spite of the differences, unites them?

The main branches of the region’s specialization are: non-ferrous metallurgy, food industry and electric power industry. These industries combine raw materials, exploitation of natural resources and a low level of development of knowledge-intensive and highly qualified technologies.

4. Think about the prospects of possible cooperation of the Far East with the countries of East and South-East Asia and with North American countries. Give examples of cooperation.

While developed countries regard the Russian Far East only as a raw material region and cooperation with them is one-sided. Political disagreements also have a negative impact. As an example of cooperation, joint development of Sakhalin deposits could also be brought about. But this is rather a sad example, because Russia’s interests are not fully respected. So far, the revenues from the exploitation of these deposits have not been received by the Russian budget.

Cooperation with Japan is hampered by disagreements over the ownership of the Kuril Islands and Southern Sakhalin.

Among the most successful joint projects is the Sakhalin-2 hydrocarbon production project. As part of the project, a double dry dock was opened in the port of Vostochny Primorye in 2004, designed for the construction of marine supporting structures made of concrete. This is the largest object of its kind in Russia and one of the largest in the world: the dock area is 33 hectares. The construction of two gas pipelines with a total length of 1.7 thousand km is in full swing. The largest in the world and the only so far in Russia plant for liquefying natural gas is being built. Transportation of liquefied gas by special vessels is considered one of the most promising areas for the development of the gas industry. The first supplies of liquefied natural gas from this enterprise are planned for November 1, 2007.

5. The Far East has its own special conditions for development – remoteness, a near-Pacific position, a wealth of resources. Assess the prospects for further economic development of the region. With the development of which industries it is connected? What are the conditions for this?

The Far East in the territorial division of labor is distinguished by non-ferrous metallurgy, fishing industry, shipbuilding and ship repair, forestry and livestock. In addition, the branches of specialization are the electric power industry, the coal industry. Especially the region is distinguished by such almost unique branches as mining of diamonds, mica, seafood, fur trade, maral breeding, soybean cultivation. The Far East plays an important role in the foreign trade relations of Russia. The region becomes especially important as an ecologically clean area.

Prospects for the region, except for the maintenance and development of the above industries, economists associate with the development of new natural resources and the further formation of the South Yakutia territorial-production complex. Great is the role of strengthening the energy base of the region, building gas pipelines, creating a market infrastructure and establishing foreign economic relations. Stable functioning of the region is unthinkable without the development of the social sphere, the solution of environmental and demographic problems.

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Economy of the Far East